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Historical W"
The
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VOL. 48 NO. 11
BIG TIMBER, SWEET GRASS COUNTY, MONTANA THURSDAY, JANUARY 6, 1938
PRICE FIVE CENTS
PRESIDENT'S MESSAGE INDICATES
NO HOPE FOR BALANCED BUDGET
WASHINGTON, Jan. 3. —President Roosevelt told congress Monday that "misuse of the powers of
capital" must be ended "or the
capitalistic system will destroy
itself through its own abuses.
At the same time he called upon
both capital and labor to cooperate with the government m working out the welfare of the nation.
Both groups, he said, should realize that "power and responsibility go hand in hand."
Chiefly because of the need of
national unity in ending mistakes
of the past and meeting the necessities of today, we must carry on,"
Mr. Roosevelt said. "I do not propose to let the people down. I am
sure the congress of the United
States will not let the people
down."
In the message which he delivered personally to a joint session of
the house and senate the president
disclosed that a balanced budget
is out of the picture for the next
fiscal year. He said, however, that
his budget estimates would show a
"further decrease in the deficit."
For international affairs the
president projected a policy of
peace "in a world where stable
civilization is actually threatened."
But he declared that in this day
of undependable treaty obligations
"on the part of others" this nation
must be "adequately strong in self
defense."
"World peace through international agreements," Mr. Roosevelt
said, "is most safe in the hands of
democratic representative governments—or, in other words, peace is
most greatly jeopardized in and by
those nations where democracy
has been discarded, or has never
developed."
The message, one of the longest
of the administration, totaling
about 4,000 words, covered the
whole field of major legislation for
this session, as well as business
policies and international affairs.
Highlights of President Roosevelt's message to congress:
I do not propose to let the people
down. I am sure the congress of
the United States will not let the
people down.
We have improved some matters
by way of remedial legislation.
But where in some particulars that
legislation has failed we can not
be sure whether it fails because
some of its details are unwise or
because it is being sabotaged. At
any rate, we hold our objectives
and our principles to be sound. We
will never go back on them.
Government can be expected to
cooperate in every way with the
business of the nation provided the
component parts of business abandon practices which do not belong
to this day and age, and adopt
price and production policies appropriate to the times.
If attention is called to, or attack made on, certain wrongful
business practices, there are those
who are eager to call it "an attack
on all business." That ... is willful deception that will not long
deceive.
In regard to taxes . . our conclusion must be that while proven
hardships should be corrected, they
should not be corrected in such a
way as to restore abuses already
terminated or to shift- a greater
burden to the less fortunate.
The proposed budget for 1939
(the fiscal year beginning next
(Continued on last page)
WARREN TOOLE GETS
JIMMY BRETT'S OLD JOB
BUTTE LIQUOR STORES
WITHOUT LICENSE CLOSED
BUTTE. Jan. 3. —Several Butte
retail liquor establishments were
closed Saturday and Sunday by D.
A. Batchoff, chief enforcement officer of the Montana liquor control board, because of failure to
have 1938 licenses.
"The Butte closings are only the
start," Batchoff said. "We intend
to take action all over the state.
No one will be allowed to operate
without a 1938 license."
WESTERN SENATORS
CONSIDER RECLAMATION
WASHINGTON, Jan. 3. —Rocky
mountain congressmen, back for
the opening Monday of the new
session of congress, found their
desks deluged with water project
details.
Of vital importance to Colorado,
Montana, New Mexico and Wyoming, these projects will have equal
rank with any other business of
the session as far as the mountain
states members are concerned.
Membership of "key" committees will force most of the delegation from the Rockies to spend
much time considering "headline"
legislation including the recommendations the president made to
congress in his message Monday.
Helena Independent: Warren
Toole of Great Falls, son of Montana's first governor and prominent in state democratic circles
for the last 20 years, yesterday was
appointed assistant administrator
and general counsel for the state
liquor control board.
Mr. Toole was appointed by the
liquor board to fill the vacancy
caused several weeks ago by the
resignation of James J. Brett, who
was named assistant administrator when the legal saloon law became effective.
In announcing the appointment
of' an assistant to Administrator
L. M. A. Wass, the board stated
Mr. Toole's wide experience as an
attorney will be of value to the
state's profitable liquor system.
ELECTRIC PLANTS MAY
BORROW FROM UNCLE SAM
WASHINGTON, Jan. 3.—The supreme court ruled Monday the government could make loans and
grants for publicly-owned electric
plants.
Secretary Ickes, the public works
administrator, said the decision
would affect construction of 52
Dower projects costing $84,026,228
for which his agency had allotted
$30,191,944 as loans to be repaid
and $21,674,408 as federal grants.
Constitutionality of the government's activity was challenged by
the Alabama Power company and
the Duke Power company. They
sought to enjoin federal financing
of projects in four Alabama municipalities and at Buzzard Roost in
Greenwood county, S. D.
Justice Sutherland delivered the
opinion. He dealt first with the
cases brought by the Alabama
Power company.
The justice announced no dissent and said that Justice Black
concurred in the result.
In his opinion, Sutherland said
that the competition with the municipalities was "entirely lawful."
Westerners Deplore 13 Cent
Slash In Price of Silver
WASHINGTON, Dec. 31. —President Roosevelt slashed the price of
silver mined in the United States
from 77.57 to 64.64 cents per ounce
tonight.
The reduction affected silver
mines and many other kinds of
metal mines which produce silver
as a by-product in a dozen western states. These mines, employ
approximately 400,000 persons.
Western congressmen who had
been confident that the price, unchanged since April 24, 1935, would
not be modified, had declared that
a lower price would make operation of many mines unprofitable.
The action raised doubts about
the world price of silver, which has
been virtually dictated by the
United States treasury for the last
three years and has been steady at
45 cents per ounce for the last
year.
Neither President Roosevelt nor
Secretary of the Treasury Mor-
genthau made an explanation of
the reduction, but it was noted
they returned the silver price to
the identical quotation fixed on
Dec. 21, 1933, when the program of
paying a premium above the world
price was initiated. Early in 1935,
the world price closed the gap and
successive increases were made in
the domestic price on April 10 and
April 24 of that year. After a
spectacular surge to 80 cents, the
world price fell back to about 45
cents where it had been before,
but no change was made in the
domestic price.
The president established the
quotation in a proclamation which
runs until December 31, 1938, but
he reserved the right to revoke or
modify it at any time. He acted
under one of the few surviving
sections of the original agricultural act, whose main farm aids were
invalidated by the supreme court.
Its inflation aspects have been a
source of constant criticism from
conservative economists, and the
treasury itself has J'b'een covertly
hostile to it. Apparently, it seized
the occasion of the expiration at
midnight tonight of the '19 3 5
proclamation as an opportunity
for bringing the domestic price in
closer relationship with the world
price.
Although the payment of an artificially high price for any goods
is considered by many economists
as technically inflationary, the
principal protest against the silver
program has arisen from the fact
that after the silver enters the
treasury it must be valued, under
the law; at $1.29 per ounce.
This gives the treasury a substantial "profit," the spending of
which, economists say, would be
especially inflationary. The treasury has not, however,, been spending this profit.
Postofficc Department Has Deficit of
Forty-Six Millions for Fiscal Year
WASHINGTON, Jan 3. — Postmaster General Farley reported
Sunday night that the post office
department had a gross deficit of
$46,614,732 for the fiscal year end-;
ed last June 30.
His annual report to congress
said that nonpostal items cost the
department $59,258,471, however,
and that it therefore should be
credited with a net postal surplus
Of $12,643,739.
The postal surplus was the third
shown by the department during
the last four years, the report said,
and was achieved notwithstanding the additional annual cost of
$40,000,000 incident to the operation of the 40-hour week law for
postal employes.
Postal officials said that congress would be asked to pass a deficiency appropriation to meet the
gross deficit. That is a customary
procedure.
Farley reported that the fiscal
year's postal revenues were the
highest in history, but that expenditures were $30,000,000 less
than in 1930, when their peak was
reached. Audited expenditures totaled $772,815,842, the report said,
and audited revenues $726,201,109.
The "nonpostal" items listed by
the department included these
amounts for free mail service:
For federal departments and
agencies other .than the post office
department, $34,081,927; for congressmen and others entitled to
"franked" mail privileges, $1,137,-
655; publications delivered in the
county of origin, $647,383; blind
persons' mail, $171,627.
Air-mail revenues showed remarkable growth, the report said,
increasing from $6,000,000 in 1935
to $12,000,000 in 1937.
Postage alone, representing 88
per cent of all revenues, increased
$54,336,681, Farley said, accompanying "further improvement" in
business during the fiscal year.
Dr. James E, Stuartt Resident of Montana
Seventy Years, Is Victim of Heart Attack
Livingston Enterprise: A sudden
heart attack suffered at the family home, 212 South Sixth street,
about 9:00 o'clock Tuesday evening, claimed the life of Dr. James
E. Stuart, 72, pioneer and prominent Montanan, and for the past
several years Park county health
officer. Ill, though not seriously,
since Christmas day, Dr. Stuart's
death came suddenly and without
warning.
The body was taken to Franzen's,
mortuary. Arrangements are pending word from relatives, although
the funeral will be in charge of
members of the Park post of the
American Legion, of which Dr.
Stuart was an active member.
Born in West Liberty, Iowa,
February 13, 1865, Dr. Stuart came
to Montana by steamboat and
stage coach when two years of
age. Together with his parents,
Dr. Stuart traveled from Iowa by
steamboat up the Missouri river to
Fort Benton: From Fort Benton
the family went overland by stage
coach to Deer Lodge where Dr.
Stuart's father, Samuel Stuart,
joined his brothers. The family
remained in Montana one year, returning to Iowa, and then coming
back into the state in 1881 by train
to Utah and thence up to Deer
Lodge.
Dr. Stuart when a young man
studied railroad telegraphy, and
became an operator for the Northern Pacific at the Hellgate station
east of Missoula, in the early 80's.
For ten years he was in the bank-
pathy, returning to Livingston to
Became interested in mining, operating the first electric hoist in the
state at Corbin, near Helena.
In 1898, Dr. Stuart came to Jar-
dine in southern Park county as
assayer and chemist for what is
now the Jardine Mining company.
In 1901 he went to Los Angeles,
Calif., where he studied osteo-
eopathy, returning to Livingston to
practice until 1905. He then went
back to California, taking a medical course in a San Francisco
school. He also studied medicine
at Willamette university at Salem,
Ore., returning to Livingston upon
(Continued on last page)
LICENSES BEING OBTAINE'I* NEW YORK BANKS HAVE
BY RETAILERS OF LIQUOR LESS MONEY ON DEPOSIT
HELENA, Jan. 3.—L. M. A. Wass,
administrator of the state liquor
board has announced 1938 retail
beer and liquor licenses totaling
$229,925 had been approved to
date.
With the start of the new year
the liquor board had approved 374
liquor licenses costing $199,200 and
526 beer licenses costing $105,400.
Fourteen wholesale beer licenses
were issued for $4,200 and. nine
club beer licenses for $450. Railroads were issued 27 beer licenses
for $450.
Retail liquor licenses range
downward from $600 depending
upon the size of the community
where issued and beer licenses
$200.
Counties and cities are authorized to collect an additional license fee up to 50 per cent of the
state license and up to the same
amount for beer licenses.
MORE MONEY WANTED
FOR SOCIAL SECURITY
WASHINGTON, Jan. 1—Congress
may be asked soon to approve a
20 per cent increase in social security appropriations for the next
fiscal year.
Informed persons said the annual supply bill for expenses for
independent government agencies
ni'obably would contain a renuest
that congress set aside $329.0.00.000
for the social security board—$55.-
459,000 more than for the current
fiscal year.
Chairman Altmeyer of the board
estimated in a confidential report
to congress that that agency
would reouire $418,000,000 in 1940
and $550,000,000 in 1945.
Altmeyer asked the budget bureau to approve an appropriation
of $397,907,409 for the next fiscal
year but that agencv reduced his
renuest bv about $68,000,000.
The chairman explained that
about $41,000,000 of the $54,459,000
increase approved by the budget
bureau would bp used for old aee
pensions. He estimated that about
21 per cent of the persons 65 vears
old or older would receive assistance in the 1939 fiscal year.
OVER SEVEN MILLION IDLE
IN STATES IN NOVEMBER
New York. Dec. 31.—The national conference board, in its latest
computation made public today,
said the average number of imem-
ploved persons in the United States
during November was 7.585.000, an
increase of 1,200,000 during the
month.
The increase in unemployment
from September to October was
300.000. the board reported.
The November estimate includes
the 2.048.000 workers attached to
projects in the'CCC.
NEW YORK, Jan. 3.—The banking firms of J. P. Morgan & Co..
and its associate, Drexel & Co. of
Philadelphia, reported Sunday
night deposits of $394,997,148 as
compared to deposits of $478,922,-
407 a year ago.
A statement of condition as of
December 31 showed total assets of
$457,111,631 against $550,338,618 at
the end of 1936. Holdings of United
States government securities were
$260,597,362 as compared to $297.-
243,312 a year ago and cash on
hand or on deposit as $91,709,065
against $89,657,159.
• <The statement showed a surplus
and partners' balance of $21,792,-
980 against $24,547,588 at the end
of 1936.
The report did not include the
interest of the firms in Morgan &
Co., of Paris.
JUSTICE SUTHERLAND TO RETIRE
FROM SUPREME COURT JANUARY 18
WASHINGTON, Jan. 5.—Justice
George Sutherland of the supreme
court Wednesday- notified President Roosevelt he would retire
from active service on that bench
on January 18.
In his letter to the president
which was sent to the White House
Wednesday morning the justice
said:
"My dear Mr. President:
"Having reached the age of
more than 75 years, and having
held my commission as associate
justice of the supreme court of
the United States, and served in
that court, for 15 years, and" thus
being eligible for retirement under
the Sumners act of March 1, 1937,
entitled 'an act to provide for the
retirement of justices of the.supreme court,' I desire to avail myself of the rights, privileges and
judicial service specified in" that
act-, and to that end I hereby retire from regular active service on
the bench, this retirement to be
effective on and after Tuesday,
the eighteenth day of January,
1938."
The retirement of Sutherland
gives President Roosevelt his second opportunity to make an appointment to the supreme court.
His first came when Justice Willis Van Devanter retired last
spring. To succeed Van Devanter
Mr. Roosevelt named Senator Hugo
L. Black of Alabama. Disclosure
TOM MARLOWE DROPS
DEAD AT IDAHO BANQUET
LEWISTON. Idaho, Jan. 4.—
Thomas N. Marlowe, 56, Missoula,
Montana, attorney, for years chairman of the Montana fish and
game commission and one of the
best known sportsmen in the
northwest, died here tonight while
addressing 300 members of the
Clearwater Wildlife federation.
Marlowe was detailing the" economic value of fish and game and
relating the recreational value of
the out-of-doors when his face
whitened and he said, "boys, I've
got to stop" and slumped into his
chair.
Death came instantaneously.
His widow, two sons and a
daughter survive at Missoula.
He was addressing the annual
federation banquet.
SEN. WHEELER WILL HOLD
SERIES OF CONFERENCES
INSURANCE COMPANIES
CONTRIBUTE TO TREASURY
Helena Independent: Receipts
of the office of John J. Holmes,
state auditor and commissioner of
insurance, swelled Montana's coffers by more than $351,000 during
1937, according to a survey of last
year's records.
In addition to the funds received by the state from the well organized bureau, Montana residents
are prevented each year from investing thousands of dollars in
fly-by-night stock schemes and
bogus promotions through the
close supervision of new companies
and stock salesmen by the department.
During his tenure of office, Auditor Holmes has made his watchword "Protect Montanans from
unlicensed bond and insurance
companies."
During 1937, Auditor Holmes issued 6,967 agent's licenses to fire,
life and casualty insurance companies operating in Montana. Revenue from the licenses was approximately $34,000.
WASHINGTON, Dec. 30.—Chairman Wheeler, democrat Montana,
of the senate interstate commerce
committee initiated Wednesday a
series of informal conferencejs designed to lay the groundwork for
a "national railroad policy."
First on the list of those whom
Wheeler arranged to consult was
Joseph B. Eastman, member of the
interstate commerce commission
and former railroad coordinator.
The Montana senator said he
would ask the advice of other
commission members at subsequent conferences.
Financial aspects of the railroad
problem, Wheeler told reporters,
would be taken up with Chairman
Jesse H. Jones of the reconstruction finance corporation when he
returns to Washington after the
holidays.
The senator disclosed rough outlines of new regulatory legislation
which he said he would introduce
early in 1938.
It was designed, he said, to remedy "defects" in the present railroad bankruptcy law by "simplifying procedure" under which insolvent roads may be reorganized.
that Black once had been affiliated with the Ku Klux Klan
aroused a storm of controversy
which lasted throughout the summer and proved one of the highlights of the 1937 battle over the
president's move to increasje the
size of the supreme court.
Justice Sutherland refused to
make any comment on his retirement. Friends said, however, that
his action was based largely on his
age: He has no serious ailment.
They said he has reached the period when he feels that he cannot
do his full share of court work
without too much of a strain and
that he is not willing to remain
on the bench when he feels that
he cannot carry his full burden of
the work.
The justice was expected to remain in Washington indefinitely
and make himself available for
such work on the lower federal
courts as may be agreeable to. him.
Such assignments by the chief justice are authorized by the retirement act and Van Devanter now is
serving on a New York federal
court.
The jurist was the first born on
foreign soil of alien parents since
1806 and the fourth in history. He
was born in Buckingham, England, March 25, 1862 but. was
brought to this country when 15
months old. His father became an
American citizen in 1869.
Sutherland was appointed an
associate justice in 1922 by President Harding after being defeated
for re-election as republican senator from Utah by Senator William H. King, a democrat and his
former law partner.
Since the inauguration of President Roosevelt in 1933, the justice
was one of the most consistent opponents of administration legislation on the bench. He was one of
a group of four generally described
as "conservative."
He ranked next to Chief Justice
Hughes as the leading writer of
opinions on administration litigations:
SOCIAL SECURITY GIVES
AID TO MANY NEEDY
WASHINGTON, Jan. 3.—The social security board reported Sunday, that over 2,100,000 needy persons—the aeed, the blind and dependent children — were receiving
monthly aid under the social security program.
Chairman Arthur J. Altmeyer
said the average monthly payment
for old-age assistance and for the
blind was $25.80, and the average
payment for dependent children
was $27 per family.
DEFICIT APPROPRIATION
MAY NEED BOOST UPWARD
WASHINGTON, Jan. 4.—Usually
well-informed officials predicted
Tuesday that President Roosevelt's
budget for the next fiscal year
would carry a $1,000,000,000 deficit,
and that he would revise hjs estimated deficit on this year's budget to $1,250,000,000.
They made these forecasts after
Mr. Roosevelt told congress Monday that the budget for the 1939
fiscal year, beginning July 1, would
be unbalanced but the deficit
would be smaller than this year's.
Secretary Morgenthau, commenting on the president's announcement, said that business conditions
had changed the situation completely since he and Mr. Roosevelt
had expressed hope in the fall of
achieving a balance.
Thirty-three Millions Spent
For 1937 Relief In Montana
WPA RELIEF ROLLS SHOW
INCREASE IN DECEMBER
WASHINGTON. Dec. 31.—Works
progress administration relief employment rolls increased 30,626 in
the week ended December 18, WPA
records disclosed Thursday.
The increase raised the total of
relief workers from 1,557,689 on
December 11, to 1,588,315 on December 18.
WPA officials said the increase
reflected few of the 350.000 iobless
workers ordered added to the rolls
December 9 by Administrator
Harry L. Hopkins.
The addition of the 350,000
workers is not expected to be noted
in the lists until next week.
Relief activities in Montana will
cost a total of $33,000,000 during
1937, the Montana Taxpayers' association estimates in its December issue of the association's quarterly publication, the Montana
Taxpayer.
Portraying the evolution of Montana relief, the association pointed
out that in 1920, "after three years
of drouth and post-war low prices
about 5.000 persons were 'on relief.' All obligations to the poor
were paid from a county poor fund
of $453,944. Until 1926 less than a
million dollars a year was spent.
From 1928 to 1932, the average annual amount for all public welfare
was about $1,400,000"
Then, the publication points out,
began the period of federal-state
aid. Since then it lists the following expenditures: August, 1932. to
.Tune. 1933, the RFC advanced $2.-
368,285; poor funds in 1933. 1934
and 1935 totaled $6,315,561: from
November, 1933. to July, 1934, the
OWA soent $6,981,000: January,
1935, to December. 1935, the FERA
and Montana relief commission
spent $25,334,633; the WPA spent
$1,205,544 up to December 31. 1935.
and other federal agencies spent
$15,566,712.
In 1936 and 1937, the publication
continues, poor funds totaled $3,-
966,160; the WPA, RA and other
federal agencies spent $37,176,546
in 1936; old age and child aid in
1936-37 cost $2,460,000; WPA, RA
and other federal agencies snent
$19,771,822 in 1937 up to November;
surplus food distributed in 1937
from March until November, cost
$521,666 and pay roll tax collections totaled $3,500,000.
The peak number of persons receiving aid in Montana during
1937 included: WPA and RA, 11,-
983 in October; CCC, 3,361 in August: NYA and student aid in May,
5,150; other federal agencies in
September. 4 896; old age and dependent children in December, 15,-
900: others getting county and
state aid. estimated. 11,190, for a
erand total of 51,500 persons receiving aid.
The publication points out that
1936 elections costs were about
$20,000 less than in 1934, due to
precinct consolidations and the
hew law requiring polls to be open
only half as long where there are
less than 100 registered voters.
Discussed also are changes in
population and shifts in taxe"s and
valuations: proposals for a unicameral legislature: increase in
school costs "in spite of the fact
that average dailv attendance in
elementary schools is declining
and hish school enrollment has
passed the peak in most counties."
and the financial condition of
Montana cities and towns up to
June 30, 1937.